A Zero Coupon Bond with a Face Value of $1,000

A zero coupon bond with a face value of $1,000 is currently selling for $687.38. The bond has a market yield of 5.48 percent. What is the bond's term to maturity, assuming semi-annual compounding?

A) 6.62 years.
B) 6.93 years.
C) 7.03 years.
D) 7.42 years.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free